Copper stocks had the highest decline. As of press release, Wanguo International Mining (03939) fell 5.5% to HK$7.73; Minmetals Resources (01208) fell 3.06% to HK$4.12; Jiangxi Copper (00358) fell 2.08% to HK$17.88.
The Zhitong Finance App learned that copper stocks had the highest decline. As of press release, Wanguo International Mining (03939) fell 5.5% to HK$7.73; Minmetals Resources (01208) fell 3.06% to HK$4.12; Jiangxi Copper (00358) fell 2.08% to HK$17.88; and China Nonferrous Metals (01258) fell 1.96% to HK$8.
According to the news, the hawkish stance of the Federal Reserve caused the market to be pessimistic about the copper price outlook. Overnight, copper closed down 1.25%. Weak domestic spot copper demand weighed on copper prices. According to Mysteel, in the face of high copper prices, most downstream buyers currently choose to wait and wait for lower prices to replenish stocks. Domestic terminal consumption is recovering slowly and the inventory removal process is slow. Recently, copper prices continued to be strong, and reached a new high during the week. Downstream processing companies are still afraid of high copper prices, and some processing companies chose to stop production in the face of high copper prices. As a result, overall downstream procurement willingness to enter the market is relatively sluggish, and demand is difficult to improve significantly. Basically, delivery within the day is mainly to meet immediate production requirements.
Goldman Sachs said that the latest order survey showed that copper demand was weaker than expected. As copper prices soared, demand slowed down, starting in April and further intensifying in May, mainly due to order delays and scale contraction. Goldman Sachs believes that the current situation may be similar to the second quarter of 2021. Too high copper prices may be adjusted to embark on a more moderate and sustainable upward path.